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Thinking carefully about economics and business strategy can mean the difference between having great technology and having a great company. This lecture focuses on clearly defining your business model, including how you’re going to make money with your product or service. Case studies are used to test concepts against a specific business.
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E101
@markzim
Business
Model
Canvas
Mark Zimmerman
Who do you serve?
What problem do you solve?
What job do you do?
How do customers find you?
How do you deliver?
How do they buy?
What type of relationships do you
have?
How do you get paid?
What things do you do? must
What resources do you need to do them?
Who else do you need to make your model
work?
need
What does it cost to operate the model?
Who?
What?
How?
Why?
Who?
What?
How?
Why?
Founder
Customer
Benefit Identity
Price
Investor
Defensibility
Market Size
Margin
Traction
1970 - Invented
1976 - Patented
1986 - Launched
Sold as a complete solution, machines & coffee for a per cup price to restaurants and offices.
1970 - Invented
1976 - Patented
1986 - Launched
Sold as a complete solution, machines & coffee for a per cup price to restaurants and offices.
1988 - Acknowledged dud, Nestle considers shutdown.
1970 - Invented
1976 - Patented
1986 - Launched
Sold as a complete solution, machines & coffee for a per cup price to restaurants and offices.
1988 - Acknowledged dud, Nestle considers shutdown.
1989 - Jean Paul Gaillard named Commercial Director. - “Pivots”
Separate the machine from the coffee.
Made and serviced by 3rd parties.
Sold through independent retail stores.
Manufacturers handle delivery and stocking.
Nespresso handles sales training.
Made and serviced by 3rd parties.
Sold through independent retail stores.
Manufacturers handle delivery and stocking.
Nespresso handles sales training.
Sold online and over the phone direct to members of the Nespresso Club.
Delivered direct to consumers in 24 hours or less.
As market matured Nespresso added their own brand machines made by an OEM.
Added it’s own retail boutiques to further control the sales message.
Created Nespresso Pro channel to serve the office market.
Nes
pres
so
high end households
member high end
restaurant quality
espresso at home
Coffee
machine
makers
marketing distribtution
& sales manufacturing
capsule sales hardware sales
retail nespresso.com
nespresso
boutiques!
call centre!production
plants
distribution
patents brand
production
mar
ket
ing
logistics
Nes
pres
so
Running Lean
Ash Maurya
Business Model Generation
Alexander Osterwalder & Yves Pigneur
Thank You.
@markzim
Mark Zimmerman
Plans are of little importance, but planning is essential.
- Churchill
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